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1/24/19
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We’ve learned of five multifamily properties in Orange County that traded recently in deals totaling $27.6 mil.
Marlon LTD, a private partnership, purchased two newly constructed assets -- a 28-unit property at 184 N Prospect and a 12-unit property at 130 S Hewes in Orange -- for a combined $15 mil in exchange for selling two older buildings in Tustin at 15962-16002 Myrtle, a 30-unit apartment complex, and a four-unit property at 14502 Del Amo.
 15962-16002 Myrtle, Tustin |
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CBRE’s Dan Blackwell represented Marlon in the transaction. The two older Tustin properties were purchased by Korkees LP, another exchange buyer represented by CBRE.
Korkees sold nine units in Fullerton near California State University Fullerton for $3.1 mil, which provided the equity for Korkees to purchase the two Tustin properties. CBRE handled the transaction in Fullerton for Korkees as well.
According to Blackwell, they had to complete construction and lease-up of the 28-unit property in Orange in a timely manner in order for everything to work, making the deals that much more challenging. Blackwell also represented the seller of the two Orange properties, Prospect Encore LLC, the developer of the projects.
Investor demand for multifamily assets has been strong. Rent growth across Orange County has continued due to the shortage of available inventory, high home prices and the influx of Millennials into the renter pool, according to CBRE research. Orange County’s population is set to grow from 3.2 million today to 3.5 million by 2040, which is likely to continue to drive demand for apartments.
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